The gold price dropped more than 2% yesterday to trade under $1,200 per ounce as the dollar strengthened and the oil price dropped below $60 per barrel. In normal trading conditions when the dollar rises and the oil price falls the gold price comes under downward pressure.

The gold price retreated in early trading as the dollar strengthened 0.10% against a basket of international currencies. Following positive economic data the market is now anticipating the Federal Reserve to raise interest rates sooner than previously expected. The selloff accelerated in the afternoon as the oil price started to fall below $60 per barrel.

The silver price fell a staggering 5.1% to $16.12 per ounce after the price dropped through the 50-day moving average.

Gold is currently trading at £764.80 per ounce, silver £10.33 per ounce, platinum £773.06 per ounce and palladium £510.42 per ounce.